MEDIUM-SIZED BUSINESSES contributing £262bn to UK GDP in 2014 are delivering a stronger performance than smaller and larger companies, according to figures from accountants Grant Thornton.
Research from Grant Thornton’s Agents of Growth series reported higher annual growth in capital investment, gross profits, and salary during 2014.
MSBs reported average salary growth of 2.3%, compared to 2.1% for small firms, and 2% for larger businesses, and it’s estimated they injected £152bn into household finances throughout 2014 via total employee remuneration, Grant Thornton said.
Capital investment spending by MSBs was up 3.4% in 2014, compared to 2.4% and 2.8% for small and large companies, respectively. And their average annual increase in gross profits was up 4.9% (small: 4.4%; large: 3.8%).
Expectations for 2015 are also better than those of their smaller and larger counterparts. They are anticipating faster growth in turnover, exports, capital investment, and employment than the UK business population as a whole.
However, while MSBs have performed well, the research has shown a flattening in turnover, down 0.6% to £708bn, and dip in productivity of 2.7%.
“Added to the flattening in turnover and dip in productivity performance, it suggests more needs to be done to promote productivity and growth. Particularly looking at skills, exports and incentivising businesses to invest and innovate, said Scott Barnes, CEO of Grant Thornton UK.
HMRC has defeated a tax avoidance scheme used by Greene King and marketed by EY, protecting around £30m in tax.
Businesses will have to think more strategically about where they can source those non-audit services in the future
Powell, who recently stepped down as chairman and senior partner at PwC, is set to join FTSE 100 firm Capita
The FD's of two highly respected British businesses have added their signature to a letter formed by the Remain campaign